Xalles Holdings Inc. (OTC: XALL), an industry-leading fintech holding company specializing in innovative technology and financial service solutions, today is answering recent shareholder questions.
In line with our unwavering commitment to transparency and fostering meaningful engagement with our shareholders, Xalles is pleased to provide clarifications on several pertinent topics:
Q1: Can you provide clarity on the “Contractors” line item listed under “Expenses” in the quarterly filings?
A1: The line item titled “Contractors” primarily covers staff-related expenditures, which include costs related to 1099 contractors and other corporate contracted entities. This is related to this type of expense of all corporate bodies fully owned by Xalles.
Q2: Considering the recent downturn in share price, how is Xalles strategically acting to uplift shareholder value?
A2: The leadership at Xalles is deeply engaged in an array of strategic endeavors, spanning from fundraising initiatives, identifying and finalizing new acquisitions, to bolstering the growth trajectory of our present subsidiaries.
Q3: Could you share insights into the current funding strategy?
A3: Xalles is actively engaged in high-level conversations with several prominent funding entities, encompassing both debt and equity avenues. Furthermore, Xalles has plans to apply for a Reg A+ public offering.
Q4: Are there updates on the ongoing acquisition processes?
A4: Xalles is currently engaged in discussions with nine companies, each displaying potential alignment with our RISE model, either as acquisition targets or as synergistic partners for our active subsidiaries. Official announcements will be made once binding agreements are in place.
Q5: Can you explain the rationale behind the decision to augment the number of authorized shares, as opposed to executing a reverse split for common shares?
A5: After assessing our present capitalization dynamics, we recognize the need to expand the number of authorized shares to accommodate more substantial fundraising ventures. It's also important to note that we currently do not view a reverse stock split as a favorable move.
Q6: With the recent expansion in the total number of authorized shares, can you shed light on the expected funding structure? Additionally, how do you envision this funding aiding our current subsidiaries and our pipeline of potential acquisitions?
A6: We're leveraging the expanded authorized share count to secure funding that has already been sourced. We remain committed to avoiding risk-laden paths like toxic convertible debt, recognizing their potential adverse effects on our company and stakeholders. Instead, our strategy draws from the company's strong fundamentals, as opposed to valuations dependent on the market price. The future capital infusions will not only strengthen our existing subsidiaries but also prime us for a series of promising acquisitions.
About Xalles Holdings Inc. (OTC: XALL)
Xalles Holdings Inc. is a holding company that focuses on direct investments in disruptive fintech companies. The company actively seeks acquisition targets in which it can invest and accelerate growth, targeting companies with solid management teams and business models, large total attainable markets (TAM), and lucrative exit opportunities. The company places emphasis on leveraging blockchain and other technologies to provide industry-leading financial reconciliation and auditing solutions, which, over time, will allow for the capture of recurring revenue streams. For more information visit: Xalles.com.
Forward-Looking Statements Disclaimer:
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by the following words: "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "ongoing," "plan," "potential," "predict," "project," "should," "will," "would," or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Forward-looking statements are not a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time the statements are made and involve known and unknown risks, uncertainty and other factors that may cause our results, levels of activity, performance or achievements to be materially different from the information expressed or implied by the forward-looking statements in this press release. This press release should be considered in light of all filings of the Company that are contained in the Edgar Archives of the Securities and Exchange Commission at SEC.gov and in OTC Markets at OTCMarkets.com.
Investor Relations Contact:
IR@xalles.com
IR: 202.779.1460